Since its opening price of $29.31 on Monday, February 3rd,
Masimo Corp. has fallen 5.8% to $27.62 as of today’s market close. The stock has reacted directly to the recent
bearish toll of larger macro events.
With earnings set to hit next week the 6% dip has not been directly
correlated to any company specific events.
The sluggish performance this week points to a bigger
picture. Emerging markets have suffered
at the start of this year from currency devaluation. In January the Argentinian Peso fell 23%, the
most dramatic depreciation since its financial crisis in 2002. Currencies in South Africa, Turkey, and
Russia have also taken hits between 7 and 9 percent. The currency volatility has led to a loss of
faith by investors in the emerging markets and consequently an economic
slowdown. With Masimo’s recent
commitment to expansion in India it is paramount that management monitors the
exposure of the dollar to the Indian Rupee.
In other news, former Chief Medical Officer (CMO) Michael
O’Reilly has left Masimo and joined Apple to help rollout Apple’s new
Healthbook for IOS 8. Healthbook
contains advanced health and fitness monitoring features that will be directly
built into the next IOS update.
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